Machinery Breakdown Insurance-scope, Coverage And Exclusions

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There is no substitue for perfection in maintenance to ensure zero breakdown in machine. Still breakdown do occur involving expensive machinery and equipment and grabing substantial financial investment for reasons varied.

Term it as unforseen, Accidental and sudden! Cover it under Machinery Breakdown Insurance Policy.

What is covered: Machinery against unforseen, sudden accidental physical loss or damage caused by-
– Carelessness
– Short-circuit, disruption, electrical overpressure
– Failure of operation of safety devices
– Structural defects, material defects or defects of assembly
– Fortuitous working accidents such as vibration, maladjustment
– Loosening of parts, abnormal stresses, fatigue, centrifugal force, excessive speed
– Defective or accidental lack of lubrication, seizure, water hammer or local overheating
– Falling, impact, collision or similar occurrences
– Obstruction or the entry of foreign bodies

Subject to main exceptions:
– Which are commonly insured: Fire & allied perils
– Which are uninsurable: Wear and tear

When is it covered: Machines are covered whilst-
– Working or at rest
– Being dismantled moved or re-erected for the purpose of cleaning, inspection, repair or installation in another position within the situation.

Machines which can be insured: All Stationary equipment can be covered-
– Electrical equipment: Including alternators and generators, motors, rectifiers, switchgear and transformers
– Mechanical plant: Including engines, turbines (steam, water & gas), blowers, compressors, pumps, machine tools, presses and refrigerators
– Process machinery in such industries as cold storage, engineering and metallurgical, paper/ pulp making, printing, rubber/ plastics and textiles

Possible extensions available:
– Third Party Liability
– Owner’s Surrounding Property
– Additional Customs Duty
– Express freight
– Escalation
– Air freight

Principal Exclusions:
– Loss/ damage arising out of overload experiments or tests
requiring imposition of abnormal conditions
– Gradually developing flaws, Wear and tear
– Wilful act/ Wilful negligence of Insured
– Loss or damage for which manufacturer/ supplier is responsible either by law or contract
– Faults or defects existing at the time of commencement of insurance, which were known to the insured/ responsible representative but not disclosed to the insurer

Salient Features of this Insurance Policy:
– 50% discount on tariff rates is applicable on tariff rates for stand by equipment (except DG Sets).
– Higher Excess can be opted for to obtain a rebate in premium rate.
– Claims Experience discount can be availed as per the provisions of the policy.

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